WHAT DeMINT TELLS US ABOUT D.C. POWER -- Manu Raju and Scott Wong write for the hometown paper: “South Carolina Sen. Jim DeMint accomplished very little in the Senate in the traditional sense: He wasn’t a legislator, has no signature laws to his name and has never been part of any major bipartisan negotiations. But the fact that DeMint leaves the chamber as one of its best-known conservative senators shows how a message man relying on the outside P.R. game can become a powerhouse in his party — often with more influence than the Senate’s old bulls and their laundry list of accomplishments.

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-- “It also shows how the powerful, ideologically rigid voices outside Capitol Hill urging Republicans to stay true to their conservative principles tend to be the real driving forces in the halls of Congress. And it underscores how both parties have seen their respective caucuses grow younger and more partisan, overtaking the consensus-minded senior senators who are more inclined to compromise. As Congress grapples with a debt crisis it must resolve before year’s end, DeMint’s sudden announcement Thursday that he’d quit his seat in January to head the conservative Heritage Foundation shows where he thinks the real power center in his party resides. ‘I honestly think I can do a lot more on the outside than I can on the inside,’ DeMint said after delivering a speech to an enthusiastic crowd at The Heritage Foundation.

-- “It’s a striking acknowledgment for a man who was poised to ascend to the top Republican spot on the Commerce, Science and Transportation Committee in the next Congress. If he were to stay, DeMint would have a major hand rewriting the nation’s highway policy and overseeing the country’s aviation, passenger rail and telecommunications laws. But given his emphasis on messaging over legislating, the 61-year-old’s move to one of Washington’s most influential conservative think tanks after a 14-year congressional career appears to be a natural choice. ‘He’s a good messenger; his skills as he says are in marketing and public relations,’ Sen. Lamar Alexander (R-Tenn.) said after DeMint briefly addressed his colleagues at a party lunch…

-- “DeMint had long promised to quit after his second term, which is up in January 2017. But virtually no one knew he would resign his seat this soon. After Heritage made DeMint the job offer on Wednesday, he informed a handful of his most trusted aides later that day. On Thursday morning, he stunned the rest of his staff with the news, as he did when he told Senate Minority Leader Mitch McConnell and South Carolina Gov. Nikki Haley (R), who will select an interim senator before a 2014 special election to fill out DeMint’s term. ‘I almost fell off my couch,’ said Sen. Lindsey Graham (R-S.C.), who met with DeMint privately in his office Thursday in the Senate Russell building. ‘I didn’t see this coming.’” http://politi.co/TW8yCz

New York Times, A1, “Tea Party Hero Is Leaving the Senate for a New Pulpit,” By Jennifer Steinhauer. http://nyti.ms/TJfKWl

-- DeMint joked about ousting Speaker John Boehner during an appearance on Rush Limbaugh’s radio show Thursday. TPM: http://bit.ly/TOtzj9

DeMINT BRINGS SHARPER EDGE TO HERITAGE – Karen Tumulty and Allen McDuffee write for the Washington Post: “When the Heritage Foundation set up shop in a red-brick Capitol Hill townhouse more than three decades ago, it represented the cutting edge of conservative thought. Ronald Reagan himself once lauded it as ‘that feisty new kid on the conservative block.’ Now, as the think tank hands over its leadership to Sen. Jim DeMint (R-S.C.), a tea party icon known more for his confrontational political style than his policy chops, the question is whether Heritage can catch up to the movement it once helped lead. The changing of the guard comes at a crucial moment, when conservatism itself is gripped by self-doubt and angst in the wake of back-to-back Republican presidential defeats. … According to Heritage’s financial report, the foundation brought in nearly $70 million last year. And Heritage remains deeply embedded in the DNA of the Republican establishment. Nearly half of the advisers to Mitt Romney’s presidential effort were former or current Heritage scholars — among them Lanhee Chen, the campaign’s policy director. But the intellectualism that was once the Heritage hallmark has become somewhat suspect in an era in which the insurgent passion of the tea party sets the terms of political activism.” http://wapo.st/11QpMYq

ALL EYES ON NIKKI HALEY – “Not only will the first-term governor appoint DeMint’s successor, she’ll set off dominoes that will reshape the next two years in Palmetto State politics, culminating with two U.S. Senate elections and her own potential reelection bid. The driving question is whether Haley selects a caretaker for the seat who would agree not to run for the full six-year term in 2014 — or taps an ally that would help cement her legacy. A spokesman for the governor declined to speculate on a timeline for the decision, but DeMint’s resignation will take effect before the next Congress convenes on Jan. 3, leaving a little more than three weeks for a decision. ‘Sen. DeMint has tossed an IED into South Carolina politics,’ said South Carolina GOP consultant Richard Quinn.

-- “Rep. Tim Scott is seen as the leading contender for the appointment among GOP consultants and officials, largely because of the historical significance. A rock-ribbed conservative 47-year-old African-American from Charleston, Scott would provide diversity and geographic balance. He would also become the first black GOP senator since Massachusetts Sen. Edward Brooke, who was defeated in 1978. … Other potential candidates include Reps. Jeff Duncan and Mick Mulvaney, Attorney General Alan Wilson, former U.S. Ambassador David Wilkins and state Sen. Tom Davis, who had been contemplating a challenge to Sen. Lindsey Graham in 2014.” http://politi.co/Xv13bT

--Scott would seem a logical fit for the Senate job,write POLITICO’s Kate Nocera and Seung Min Kim: “DeMint and Scott are close, personally and ideologically, and Scott has the conservative bona fides that are undoubtedly DeMint-approved. He’s risen in the House quickly since his election in 2010, serving on the powerful Rules Committee and working closely with GOP leadership as a liaison for the freshman class, while maintaining good relationships with the tea party wing of House Republicans. At least for the moment, DeMint is staying mum on his preferred pick, saying he’ll leave the decision to Haley. Likewise, Sen. Lindsey Graham (R-S.C.) said he isn’t going to speculate on who might join him in the upper chamber. … Scott also has the kind of personal story that’s undoubtedly appealing to a party that’s trying to diversify its base: He worked his way out of poverty to become a successful small-business man, local politician and eventual congressman. If appointed, Scott would be the only black senator to currently serve in the chamber, and the first since Illinois Democrat Roland Burris left the Senate in 2010.” http://politi.co/TVTcOs

** America’s beer industry supports real jobs. Beer is a $223 billion industry supporting 1.8 million American jobs. We help put people to work, from farmers to factory hands, bartenders to brewers, in nearly every community in the United States. Learn more at http://bit.ly/Rxf7Lx

GOOD FRIDAY MORNING, DECEMBER 7, 2012, and welcome to The Huddle, your play-by-play preview of the day’s congressional news. Send tips, suggestions, comments, complaints and corrections to swong@politico.com. If you don't already, please follow me on Twitter @scottwongDC.

My new followers include but are not limited to @tomflanagin and @GrahamBlog.

TODAY IN CONGRESS – Both the House and Senate are out. The Senate will be back on Monday, the House on Tuesday.

SPOTTED: New Jersey Gov. Chris Christie bumping into Sen. Rand Paul in a stairway just off the Senate floor. Christie, seeking more federal Hurricane Sandy aid, greeted the Kentucky senator and the two shook hands before Christie’s entourage walked down to the first floor. The men are considered possible rivals for the 2016 GOP presidential nomination.

FETED: Longtime Senate Press Gallery staffers Wendy Oscarson and Jim Saris, who both retired earlier this year after a combined 60 years of service. Dozens of reporters, Senate staffers and Capitol police officers turned out for the retirement party in the daily gallery. Toasts were given by McClatchy’s David Lightman and gallery Director Joe Keenan, who said Oscarson and Saris had been witnesses to history: the past eight presidential inaugurations, Iran-Contra, Clinton impeachment and the 9/11 attacks. Saris choked up and couldn’t get through his speech after thanking his wife for enduring so many late nights while the Senate burned the midnight oil. Oscarson called it “one of the best places anybody could ever work.”

“No matter what happens in this building, it is so historic and so special. And everybody that works in this building, we all work together. It really still is a true Senate family,” she said. “There’s good days and bad days, and good years and bad years, but at the end of the day, it is really a fabulous job, whether you’re on the press side, the Senate side, the staff side, a senator – they’re wonderful gigs. It’s really truly a blessing that we get to watch this history live and in person.”

IN CLIFF TALKS, OBAMA AND BOEHNER STAND ALONE – Jonathan Weisman and Peter Baker report for the New York Times: “At House Speaker John A. Boehner’s request, Senate leaders and Representative Nancy Pelosi have been excluded from talks to avert a fiscal crisis, leaving it to Mr. Boehner and President Obama alone to find a deal, Congressional aides say. All sides, even the parties excluded, say clearing the negotiating room improves the chance of success. It adds complexity as the two negotiators consult separately with the leaders not in the room. But it also minimizes the number of people who need to say yes to an initial agreement. ‘This is now the speaker and the president working this through,’ said Senator Richard J. Durbin of Illinois, the Senate’s No. 2 Democrat. White House aides and the speaker’s staff, by mutual agreement, have largely shut down public communication about the talks to avert hundreds of billions of dollars in automatic tax increases and spending cuts set to begin in January if no deal can be reached. Both sides said on Thursday that lines of communication remained open.

-- For public consumption, Democrats and Republicans are engaging in an increasingly elaborate show of political theater. … On Capitol Hill, Senator Mitch McConnell of Kentucky, the Republican leader, moved Thursday to vote on Mr. Obama’s proposal, in his broader deficit package, to permanently diminish Congress’s control over the federal government’s statutory borrowing limit, assuming that Democrats would break ranks and embarrass the president. Instead, Democratic leaders did a count, found they had 51 solid votes, and took Mr. McConnell up on what Senator Harry Reid of Nevada, the Senate majority leader, called ‘a positive development.’ Mr. McConnell then filibustered his own bill, objecting to a simple-majority vote and saying a change of such magnitude requires the assent of 60 senators.”http://nyti.ms/YUySn4

McCONNELL TAKES HARD LINE AS 2014 LOOMS – Naftali Bendavid writes in the Wall Street Journal: “Senate Minority Leader Mitch McConnell has found shrewd ways to solve some of Washington's most intractable budget standoffs. In the current battle, the Kentucky Republican is taking a notably tougher tone, leading colleagues to wonder about his role as the debate unfolds. Mr. McConnell has been aggressive where House Speaker John Boehner (R., Ohio) has been conciliatory. He declined to endorse Mr. Boehner's proposal that included raising $800 billion in new tax revenue. He has said he laughed aloud at a proposal President Barack Obama offered last week, calling it ‘comical’ and ‘absurd’ …

-- “Colleagues note that Mr. McConnell, who was elected to the Senate in 1984, is up for re-election in 2014 and must be alert for a tea-party challenge. As Senate minority leader, it isn't surprising he would be more confrontational than Mr. Boehner, who has to forge the budget deal personally with the president.” http://on.wsj.com/SD0yI8

W.H. NOT BUDGING ON TAX RATES – Jake Sherman, John Bresnahan and Carrie Budoff Brown report for POLITICO: “On Thursday, with the House out of session, White House congressional liaison Rob Nabors trekked to Capitol Hill and delivered a firm message: We aren’t moving. In a meeting with leadership staff, Nabors reiterated the administration’s hard line that tax rates on top earners must go up, according to Republican sources with knowledge of the meeting. The White House is also insisting that Congress give it power to raise the debt limit on its own. Furthermore, in a development that could signal a step closer to the fiscal cliff, Nabors said the White House’s offer stands on mandatory spending on entitlement programs, the sources said. But another source familiar with the discussion offered a conflicting take, saying Nabors repeated that Obama isn’t wedded to every detail of his plan. Nabors also conveyed that, once Republicans move on rates, ‘they can get a deal very quickly,’ the source said.” http://politi.co/SK2Syn

SOME LAWMAKERS HOPEFUL FOR DEAL – Janet Hook writes in the Wall Street Journal: “Some see hope for compromise in the emergence of a small but growing number of Republicans who have indicated a willingness to raise tax rates for higher-income Americans—a key demand of Mr. Obama. Administration officials, meanwhile, have indicated they wouldn't insist on raising the top tax rate all the way back to the Clinton-era level of 39.6%. … While GOP leaders have stalwartly opposed any rate increase, an array of ideas has popped up from the party's rank and file showing growing willingness to consider such a move as part of a broader budget deal.

-- “Rep. Steve LaTourette (R., Ohio) said that in Wednesday's House GOP meeting he and others proposed legislation including the Bowles-Simpson deficit-reduction plan to raise taxes and cut spending. Mr. LaTourette is collecting signatures on a letter to congressional leaders backing that approach and expects to have more than 100 co-signers—about half Republicans. ‘Positions are softening,’ said Mr. LaTourette, who is retiring at the end of this year.

NRSC FLIP-FLOPPED ON AKIN SPENDING – John Bresnahan and Manu Raju report for POLITICO: “The National Republican Senatorial Committee quietly sent $760,000 to the Missouri Republican Party in early November, just as the state GOP was mounting a last-minute TV ad blitz to boost Rep. Todd Akin’s sagging Senate campaign, according to records released Thursday. The NRSC funds appear to have helped pay for the pro-Akin TV ads as he was struggling to narrow Sen. Claire McCaskill’s lead at the polls. The disclosure is highly significant because the Senate GOP campaign committee promised to abandon Akin after failing to push the conservative congressman out of the race following his August declaration that “legitimate rape” rarely leads to pregnancies because female bodies often shut down. The NRSC declined to comment Thursday night.” http://politi.co/TGajUC

$100K IN JEWELRY STOLEN FROM ISSA’S HOME – Edward Sifuentes reports for the North County Times near San Diego: “An estimated $100,000 worth of jewelry was stolen from Rep. Darrell Issa’s home in Vista last week, according to the Sheriff’s Department. Deputies responded on Nov. 29 to a burglary call at the Republican congressman’s house in the city’s upscale Shadowridge neighborhood, Sheriff’s Department records show. The incident occurred between 6:40 p.m. and 7:20 p.m. that day. More than 50 pieces of jewelry were stolen, including watches, earrings, rings and bracelets, according to department records. A spokesman for Issa, chairman of the House Oversight and Government Reform Committee, said Thursday that the stolen pieces were priceless to his family. ‘The items that were taken were irreplaceable family heirlooms that were inherited by the Issa family,’ said spokesman Frederick Hill. Issa is one of the wealthiest members of Congress. His estimated worth in 2010 was $195 million to $700 million, according to the website opensecrets.org.” ” http://bit.ly/UrCWGb

DATE SET FOR KIRK’S RETURN – Katherine Skiba writes for the Chicago Tribune: “U.S. Sen. Mark Kirk, who suffered a stroke in January, plans to return to the Senate floor on Jan. 3, the first day of the new Congress, Rep. Randy Hultgren, R-Ill., said Thursday. A Senate official, who spoke on condition of anonymity, confirmed the return date and said it would be marked by a “significant event” with Kirk walking up the Capitol steps to the chamber. Hultgren said there were plans for a ‘big party and celebration when he comes back,’ and that lawmakers from Illinois may gather in or near the Senate chamber to welcome him. ‘I’m just really excited,’ he said. ‘I’m so grateful for the recovery he’s been able to make.’” http://trib.in/UrxNxO

LAME-DUCK POLS PUSH PET PROJECTS – Jonathan Allen and Kate Nocera report for POLITICO: “As they exit the Capitol, losing lawmakers and retirees are rushing to introduce bills, bring them to the floor and stage last press conferences on pet issues. Party leaders are stepping aside — and in some cases, aiding and abetting these eleventh-hour legislative goodies. Many of the bills have serious goals: a path to citizenship for certain illegal immigrants, strengthening a religious exemption to the health insurance mandate and merging the financial regulators at the Securities and Exchange Commission and the Commodity Futures Trading Commission. Others not so much. Rep. Larry Kissell (D-N.C.) wants to designate Jan. 8 as Elvis Presley Day. Rep. Connie Mack (R-Fla.) has even been accused of pushing a bill to benefit one of the major donors to his failed Senate bid. In a political world rich with irony, this truth stands out: Losing your job can be the best way to move an issue forward. Lawmakers and aides say it’s an age-old political courtesy for Republican and Democratic leaders to let an outgoing colleague get a vote on a bill that has been stuck in the legislative process.” http://politi.co/TG39Q3

CONGRESS SCRAPS RUSSIA TRADE CURBS – Sudeep Reddy reports for the WSJ: “Congress overturned long-standing trade restrictions with Russia on Thursday, achieving a top priority for U.S. businesses, but slapped Moscow over human-rights abuses as a rift between the two governments widened. The Senate voted 92-4 to grant Russia permanent normal trade relations, following widespread House support for the measure in November. President Barack Obama plans to sign the bill. The legislation includes a measure that has angered Moscow: banning Russians accused of human-rights violations from obtaining U.S. visas and constraining their access to the U.S. financial system. The White House had sought legislation focusing solely on trade concerns, but lawmakers in the House and Senate used the bill to send a message about corruption and human-rights violations.” http://on.wsj.com/VOjjck

THURSDAY’S TRIVIA WINNER – Jon Deuser was first to answer that Sen. Lamar Alexander was formerly president at the University of Tennessee, and former Sen. David Boren is now president of the University of Oklahoma. Other answers I accepted were Roy Blunt, Paul Trible Jr. and Jay Rockefeller.

TODAY’S TRIVIA – Deuser has today’s question: Visitors to the late Rep. Jack Brooks's office always knew a meeting was effectively over when he pulled what item from his desk to give as a parting gift? First to correctly answer gets a mention in the next day’s Huddle. Email me at swong@politico.com.

GET HUDDLE emailed to your Blackberry, iPhone or other mobile device each morning. Just enter your email address where it says “Sign Up.” http://www.politico.com/huddle/

** America’s beer industry supports real jobs. Beer is a $223 billion industry supporting more than 1.8 million American jobs in every state and every community across the nation. We help put people to work everywhere from your local tavern, restaurant and grocery store, to warehouses, breweries and farms. All told, America’s beer industry pays $71 billion in wages and benefits to our employees. Which in turn is taxed, providing billions in revenue to the federal and state governments. The last time federal excise taxes were raised, 60,000 Americans lost their jobs as a result. To do so again would be just as devastating, if not more so. Learn more at http://bit.ly/Rxf7Lx

** A message from the Stop The HIT Coalition: The Health Insurance Tax (HIT) drives up health care costs for small businesses, seniors, state Medicaid programs and middle-income Americans. The HIT is estimated to cost hardworking American families an additional $5,000 over a decade. And since the cost and consequences of the HIT increase over time, America’s small businesses and hardworking families are facing a bigger HIT every year. This translates to real jobs for businesses and real wages for families. That’s why the Stop The HIT Coalition – representing the nation’s small business owners and their employees – is working hard to repeal the HIT before it causes even more damage. Congress, please stop the HIT. Once and for all. http://bit.ly/1iE6tfW **

Authors:

About The Author

Scott Wong covers transportation for POLITICO Pro, and authors The Huddle, POLITICO’s popular morning tipsheet on Congress. He was a congressional reporter with the publication from 2010 to 2012.

He reported from Tucson, Ariz., after the deadly shooting rampage that severely injured Rep. Gabby Giffords and helped break a story about Missouri Sen. Claire McCaskill’s private plane that led to her admission she owed more than $300,000 in state property taxes.

He got his professional start in journalism covering local government for two small newspapers in his native San Francisco Bay Area. He later became a staff writer for The Arizona Republic, where he covered the Arizona statehouse and Phoenix City Hall.

After graduating from UCLA, he spent a year teaching English in a rural mountain village in Japan. He is a member of the Asian American Journalists Association, and lives with his wife and daughter in Washington.